The Hidden Costs in Buying a Home

The true cost of buying a home is more than just the final closing price.  Not only will you need to set a budget for your dream home, you will also need to save for a wide range of fees and costs that will arise after the sale.  As the premier real estate agent for all your Springfarm Yorkhill real estate needs, I would like to share the following hidden costs that are part of buying a home.

Closing Costs

There are a few closing costs that you will need to cover when purchasing your home.  These include:

  • Lawyers’ fees, the taxes on your home and any lender’s fees.
  • House insurance to cover your personal belongings as well as insurance for fire, flood and earthquake.
  •  Moving costs.
  • Any strata fees and your home’s annual property tax.

Utilities, Furniture and Services

Once you have covered the closing costs, the next set of expenses associated with your home are outfitting your home with the creature comforts and necessities.  Chances are you are going to need to purchase furniture to furnish your entire home.  Other costs that you will need to consider include:

  • Services such as cable and internet.
  • Utilities – electricity and heat.
  • City services such as garbage collection, recycling and water.
  • Any tools or items that are required for your home’s upkeep such as hoses, rakes, lawnmowers and maybe even a place to store them, such as a shed.

Long-Term Plans

If you have any money left over, it is a wise decision to set aside a rainy day fund for any upcoming costs.  Now that you are a homeowner, you are responsible for upkeep and maintenance costs as well as any replacements.  You will want to budget for projects such as:

  • A new roof.  Your home inspector should be able to give you a rough estimate of how many years are left on your roof and when you will need to replace it.
  • Repainting both the interior and exterior of your home as well as the fence, planters or other structures such as a shed. 
  • Any appliances that need to be repaired or replaced.

These hidden costs can quickly put you over your intended home purchase budget.  Make sure to accommodate for these hidden costs, so that you are not house poor or overstretched.  If you would like more information on these hidden costs or other costs attached to buying a home or are interested in the real estate options that abound in the Springfarm Yorkhill area, please contact me today.  I would love to help you find that perfect home.